Keleher v. New England Telephone & Telegraph Co.

OAKES, Chief Judge:

This case presents a novel and important question concerning the power of the federal courts to interfere in state and local taxation affairs. Specifically, we must decide whether and to what extent the Tax Injunction Act (the “Act”), 28 U.S.C. § 1341 (1988), limits the federal courts’ jurisdiction over state and local tax enforcement actions. For the reasons set forth below, we conclude that the Act creates an absolute jurisdictional bar to federal involvement in state and local revenue collection schemes, and that, as a result, a federal court may not play any role at all…